The firm aims at maximizing its profits in the short run. The wage level is w=140. The production function is as below. Variable Input (Labour) Price of output Output L P Q 0 5 0 1 5 58 2 5 112 3 5 162 4 5 208 5 5 250 6 5 288 7 5 322 8 5 352 9 5 378 10 5 400 11 5 418 At which number of workers is the marginal product of labour is at its maximum? a. 1 b. 2 c. 3 d. 4 What is the optimum number of workers? a. 3 b. 4 c. 5 d. 6
The firm aims at maximizing its profits in the short run. The wage level is w=140. The production function is as below. Variable Input (Labour) Price of output Output L P Q 0 5 0 1 5 58 2 5 112 3 5 162 4 5 208 5 5 250 6 5 288 7 5 322 8 5 352 9 5 378 10 5 400 11 5 418 At which number of workers is the marginal product of labour is at its maximum? a. 1 b. 2 c. 3 d. 4 What is the optimum number of workers? a. 3 b. 4 c. 5 d. 6
Chapter10: Labor Markets And Income Distribution
Section: Chapter Questions
Problem 3SQP
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Question
The firm aims at maximizing its profits in the short run. The wage level is w=140. The production function is as below.
| Variable Input (Labour) | Price of output | Output |
| L | P | Q |
| 0 | 5 | 0 |
| 1 | 5 | 58 |
| 2 | 5 | 112 |
| 3 | 5 | 162 |
| 4 | 5 | 208 |
| 5 | 5 | 250 |
| 6 | 5 | 288 |
| 7 | 5 | 322 |
| 8 | 5 | 352 |
| 9 | 5 | 378 |
| 10 | 5 | 400 |
| 11 | 5 | 418 |
At which number of workers is the marginal product of labour is at its maximum?
a. 1
b. 2
c. 3
d. 4
What is the optimum number of workers?
a. 3
b. 4
c. 5
d. 6
e. All the other answers are wrong.
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